894.245/7–254

No. 774
Memorandum by the Director of the Foreign Operations Administration (Stassen) to the President

confidential

Subject:

  • Special Compensatory Relief and Rehabilitation Assistance for Japan

On March 1 a small Japanese fishing vessel with a crew of 23 received a deposit of radioactive ash several hours after the crew had observed the tremendous flash and explosion resulting from a nuclear test conducted by the United States at Bikini. After several days, some of the members of the crew began to suffer from skin burns and were found upon arrival in Japan to have been injured as a result of the nuclear test. The United States has indicated to the Japanese Government its willingness to provide compensation, without admission of any liability, for this and other damage resulting from the Bikini incident. The State Department has been conducting informal negotiations with the Japanese Foreign Office. Japan has estimated total direct personal and property damage to be about $800,000, with an additional $6,000,000 of indirect damage resulting from loss of profits by the fishing industry, depressed prices, and governmental expenditures. Under the circumstances described by the American Embassy in Tokyo, and in view of the great importance of this matter in United States–Japan relations, and in view of its corresponding importance to the security of the United States, the Department of State has concluded that a final compensation settlement of $750,000 to as much as $1,000,000 would not be unreasonable.

The Operations Coordinating Board has considered this problem at length, and has concluded that the promptest and most desirable method of compensating the Japanese nationals injured in the Bikini incident would be through the furnishing of not more than [Page 1666] $1,000,000 worth of relief and rehabilitation assistance under the terms of Section 513 (b) of the Mutual Security Act of 1951, as amended.

Accordingly, it is recommended that the President determine, pursuant to Section 513 (b), (1) that up to $1,000,000 of the funds available under the Mutual Security Act may be used for the purpose of furnishing special assistance to Japan for the compensatory relief and rehabilitation of Japanese nationals who sustained personal and property damage as a result of the recent nuclear test in the Marshall Islands, without regard to the requirements of the Mutual Security Act or any other Act for which funds are authorized by that Act, and (2) that the use of these funds is important to the security of the United States. In the event that you make this determination, it is contemplated that the funds to be used for this purpose will be drawn from the funds appropriated by the Mutual Security Appropriation Act, 1954, for assistance authorized by Section 540 of the Mutual Security Act of 1951 for the purpose of Section 101 (a) (1).

This recommendation has the concurrence of the Secretary of State, the Secretary of Defense, and the Director of the Bureau of the Budget. The Attorney General1 has been afforded an opportunity to comment, and interposes no objection to the use of this procedure to compensate the Japanese.2

Harold E. Stassen
  1. Herbert Brownell.
  2. On June 29 the President signed a memorandum in which he made both the determinations recommended above.

    In a memorandum dated July 2, Drumright informed the Secretary of the President’s decision and asked that the Embassy in Tokyo be authorized to conclude an Executive Agreement with Japan in settlement of Japan’s claims for compensation. “The United States position on the amount of compensation will be finalized during the discussions between the Ambassador and the Foreign Minister.” The approval line of the source text is initialed by the Secretary. (President’s memorandum is enclosure to Drumright’s memorandum, 894.245/7–254)